Roper Industries Inc.
) reported first quarter 2013 non-GAAP earnings of $1.27 per
share, up 16.5% from the year-ago quarter and ahead of the Zacks
Consensus Estimate of $1.22.
Roper's non-GAAP total revenue (excluding a fair value
adjustment to acquired deferred revenue) increased 4.2% year over
year to $740.7 million in the quarter. The Zacks Consensus
Estimate was pegged at $781.0 million.
On a GAAP basis, Roper reported revenues of $737.1 million, up
3.7% from the year-ago quarter. Acquisitions and divestitures
accounted for 7.0% of the revenue growth in the quarter. Organic
revenues declined 3.0% and the company reported a backlog of $1
Growth across most its business segments also contributed to
the year-over-year increase in revenues. Revenues from Medical
& Scientific Imaging and RF Technologies increased 23.1% and
2.1%, respectively. The strength in these segments more than
offset the 2.0% decline in revenues from Energy Systems &
Controls and a 6.6% drop in revenues from the Industrial
Non-GAAP gross profit increased 8.7% year over year to $425.2
million. Gross margin in the reported quarter increased to 57.4%
from 55.0% in the year-ago quarter, primarily driven by better
mix and higher volumes.
Non-GAAP income from operations increased 10.8% year over year
to $188.8 million. The upside in operating income was based on
improved sales. Operating margin improved from 24.0% to 25.5% on
a year-over-year basis. Net earnings on a non-GAAP basis
increased 17.5% from the year-ago quarter to $127.2 million.
Roper exited the quarter with $430.0 million in cash and cash
equivalents and $1.92 billion of total debt (including the
current portion) compared with $370.6 million in cash and cash
equivalents and $2.02 billion of total debt (including the
current portion) in the previous quarter. Roper reported free
cash flow of $160.1 million at the end of the first quarter.
Roper also increased its fiscal 2013 earnings outlook from
$5.60-$5.82 to $5.76-$5.94 per share. Currently, the Zacks
Consensus for fiscal 2013 earnings estimate is pegged at $5.75
We believe that strong backlog coupled with robust organic
growth will drive earnings growth going forward. Moreover,
accretive acquisitions will expand its product portfolio,
providing a significant competitive edge against peers.
However, macroeconomic concerns, integration issues due to
acquisitions and competition from
Agilent Technologies Inc
) are possible headwinds for the company.
Currently, Roper has a Zacks Rank #2 (Buy).
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